GLOBAL VIDEO INDEX -...

GLOBAL

VIDEO INDEXQ3 2012

Table of ContentsABOUT OOYALA’S GLOBAL VIDEO INDEX ............................. 3

EXECUTIVE SUMMARY ........................................................ 4

GOING LONG: LONG-FORM VIDEO ...................................... 5

TABLET AND MOBILE VIDEO ................................................ 7

LIVE VIDEO VIEWING ........................................................... 8

VIEWER BEhAVIOR AND ENGAGEMENT BY DEVICE ............ 10

TURNING INFORMATION INTO INSIGhTS ............................ 11

APPENDIX ........................................................................ 12

About Ooyala’s Global Video Index

Ooyala measures the anonymized viewing habits of nearly 200 million unique viewers in 130 countries every month. We process billions of video analytics events each day. Our market-leading video analytics help media companies and consumer brands grow their audiences and earn more money from mobile, multi-screen broadcasting.

Ooyala works with TV networks, cable and satellite providers, movie studios and online media companies to put premium video content on tablets, smart phones, smart TVs

and PCs all over the world.

About Ooyala Video Publishers

Ooyala works with hundreds of forward-thinking video publishers, operators and aggregators around the globe, including Miramax, ESPN, Bloomberg, PAC-12 Network, Caracol TV, CJ Entertainment, and Yahoo! Japan.

This report reflects the anonymized online video metrics of these publishers. It does not reflect the online video consumption patterns of the Internet as a whole. But the size of the Ooyala video footprint, along with the variety of our customers, means this report offers a statistically representative view

of the overall state of online video.

http://videomind.ooyala.com/news/ooyala-video-analytics-named-best-breed-roth-capital-partners-report

Executive SummaryA lot happened in the world of video during

the third quarter of 2012. Olympic fever took

over London (and the world), the iPad 3 was

released in China, and the US election picked

up steam.

Q3 also saw the launch of the PAC-12

Networks (powered by Ooyala), an event that

raised the bar for digital sports broadcasting.

The industry also saw the emergence of new

mid-form content like Jerry Seinfeld’s web

series, “Comedians in Cars Getting Coffee,”

demonstrating the viability of content that

moves directly from creator to consumer.

GOING LONGPeople continue to spend more time with long-form, premium video content, and are watching more movies, sports, and TV shows online.

Tablet owners spent 71% of their total tablet video viewing time watching videos 10 minutes or longer.

30% of total tablet viewing time was spent watching content over an hour long.

TabLET & MObILE VIDEOTablet and mobile video are still gaining traction as more viewers tune in on their smart phones, iPads and Android tablets.

The overall share of tablet video viewing grew 90% in the past two quarters.

COMING aT YOu LIVELive streaming video continues to engage connected audiences across all device types.

The amount of time users spent watching live video on gaming consoles more than doubled in Q3.

Desktop viewers tuned into live video for an average of 40 minutes.

5Q3 2012 GLOBAL VIDEO INDEX

Percent of Long Form Video Views by Device Q1, Q2, Q3 2012Q1 2012 Q2 2012 Q3 2012

0%

25%

50%

75%

100%

Desktop Mobile Tablet CTV&GC

Going Long: Long-Form VideoTV is no longer a single screen in the living room. Viewers today are watching long-form premium content on a variety of connected devices. Tablets are quickly becoming the “first screen” people turn to when streaming TV shows, movies and sporting events. This is true in developing markets, and even in households with traditional televisions.

OOYaLa DaTa frOM Q3 rEVEaLs: Viewers who watch videos on their smart phones

spent nearly half their time watching premium, long-form content (defined here as videos over 10 minutes long).

Long-form content accounted for 71% of all the time people spent watching tablet video last quarter. 30% of all time spent watching video on tablets was with content over an hour long.

Viewers who watched video over-the-top via connected TVs and gaming consoles (CTV & GC) spent 94% of their time watching videos 10+ minutes long.

42% of the total time spent watching video on CTV & GCs was with content running between 30 and 60 minutes. Videos with 60+ minute running times accounted for 41% of total viewing time on CTV & GCs.

THE bOTTOM LINE

As consumers gain more control

over how and when they view

their content, publishers must

develop a more personalized

and holistic view of video

monetization. It is no longer

optimal to think of video ads in

terms of single clicks and views,

especially with long-form content.

Sophisticated analytics systems

can help publishers optimize ad

or paywall strategies based on a

deeper definition of engagement

that includes personal viewing

habits, time of day, viewing

device, and signals from a

viewer’s social graph.

In Q3, tablet video viewers

spent 71% of their time

watching long-form content

like movies and TV shows—

up from 46% in Q1.

Since the start of 2012,

tablet video viewers are

watching 54% more

long-form content.

Going Long: Long-Form Video


< 10 min 10 to 30 min

30 to 60 min > 60 min

0%

25%

50%

75%

100%

% o

f A

ll H

ours

Wat

ched

Mobile Tablet CTV&GCDesktop

Long-Form Viewing By Device Q3 2012

For long-form premium content, there’s no such thing as “online video” anymore. The definition of TV has changed to include any premium content viewed on an increasing number of connected screens. Monetization strategies must adapt to this new reality.

< 1 min 1 to 3 min

>10 min

3 to 6 min

Time Watched by Video Length and Device Q3 2012

6 to10 min

% o

f A

ll H

ours

Wat

ched

0%

25%

50%

75%

100%

Mobile Tablet CTV&GCDesktop

30% of the total time spent

watching tablet video was with

content 30-60 minutes long.

Nearly 20% of total desktop viewing time

was spent watching content that ran

60+ minutes.


THE bOTTOM LINE

Video publishers who use multi-

screen ad strategies can now

monetize their mobile content

with higher ad loads.

Pre-rolls are not always best,

especially on mobile screens.

HLS offers mid-roll ad delivery

on iOS devices and connected

TVs—a greenfield opportunity

for publishers looking to boost

server-side ad insertion.

Expect to see more geo-local

mobile ads like this summer’s

Chevy Volt video campaign

that targeted mobile Hulu Plus

viewers (and directed them to

their nearest Chevy dealer based

on their location).

As more viewers begin to use

multi-device continuous play in

the coming quarters —moving

content from a TV to a phone

or a tablet—there will be more

opportunities for cross-device

video advertising.

Tablet and Mobile VideoWe previously reported in our Q1 Video Index that after the new iPad was released in March 2012, tablet viewing jumped 26%. Since that time, the overall share of tablet video viewing has grown 90%.

The share of mobile video viewing grew 39% in the past six months. Taken together, the share of time spent watching tablet and mobile video jumped 64% in Q2 and Q3.

Mobile Tablet Tablet + Mobile

Share of Overall Video Plays: Tablet, Mobile Q2, Q3 2012

Sha

re o

f ti

me

wat

ched

0%

1%

2%

3%

4%

5%

6%

April May June July August Sept


Live Video ViewingOoyala’s data shows that viewer engagement with live content like sports and special events was much stronger than VOD viewing times on the same devices.

THE bOTTOM LINE

Live video + big screens = more

viewer engagement and more

chances to monetize premium

streaming content.

Live ad insertion is a must-have

for increasing revenue for live

videos and events.

Publishers should also look

into repackaging live video as

on-demand content, which will

maximize the number of overall

views and ad displays.

CTV + GC

Growth of Live Video Time Watched: CTV and GC Q3 2012

0%

100%

200%

300%

July August September

Live video viewing on connected TVs

and gaming consoles more than

doubled in Q3.

Live Video Viewing


Video Time Per Play By Device Q3 2012M

inut

es

02468

10

20

30

40

50

Live VOD

CTV&GCTabletMobileDesktop

Time per Play by Device Q3 2012Desktop Mobile Tablet CTV + GC

Min

utes

0

2

4

6

8

10

12

July August September

Desktop viewers tuned into

live video for an average

of 40 minutes.

VOD time per play

on gaming consoles

and connected TVs

grew 14% in Q3.


THE bOTTOM LINE

Break engagement down by device

and content length, and the same

engagement patterns emerge.

The most engaged viewers are

watching on tablets and connected

TVs and gaming consoles.

Viewer Behavior and Engagement by DeviceWe’ve previously noted that people watch differently on different devices, and our Q3 data continues to support this statement.

Overall engagement metrics for tablets and connected TVs and gaming consoles are consistently higher than other connected screens. This is largely due to the lean-back mentality of these devices offer and warm, comfortable couches.

Engagement by Device Q3 2012

Freq

uenc

y

25%Completion Rate: 50% 75% 100%

Desktop Mobile Tablet CTV & GC0%

20%

40%

60%

80%

Desktop Mobile Tablet CTV & GC

< 1 min 1 to 3 min 3 to 6 min 6 to10 min

Playthrough by Device & Video Length Q3 2012

> 10 min

0%

20%

40%

60%

80%

Turning Information Into Insights

When you optimize revenue strategies for each viewer, device and location, you get more relevant ads, delivered at the right time on the right screen.

This results in more revenue for video publishers.

Ooyala uses Big Data and real-time video analytics to help you understand your audience like never before and connect with them in meaningful ways.

The result is a more personalized and profitable media experience that benefits viewers and content publishers alike.

That is the power of information. That is the power of Ooyala.

Appendix: Data Tables


Long Form Video Views by Device Q1, Q2, Q3 2012

Growth of Live Video Viewing Time: Connected TVs and Gaming Consoles Q3 2012

Percent of Time Spent Watching Video Q3 2012

Live Video Time Per Play (Minutes) By Device Q3 2012

VOD Time Per Play (Seconds) By Device Q3 2012

Tablet, Mobile Share of Overall Video Plays Q2, Q3 2012

Percent of Long Form Video Views by Device


Q1 2012Q2 2012Q3 2012

53.9% 41.1% 46% 88.5%62% 48% 67% 93%

59.9% 47.6% 71.2% 93.8%

% Of All Hours

Watched


less than 11 to 33 to 66 to 10

greater than 10less than 10 minutes

10 to 3030 to 60greater than 60

2.35% 3.33% 2.39% 0.19%15.02% 24.98% 12.83% 1.43%14.69% 15.15% 8.48% 1.74%8.03% 8.91% 5.10% 2.85%

59.92% 47.64% 71.20% 93.79%

40.08% 52.36% 28.80% 6.21%

14.85% 16.42% 11.14% 11.67%26.05% 18.19% 30.57% 41.59%19.02% 13.02% 29.49% 40.52%

Tablet, Mobile Share of Overall Video Plays Q2, Q3 2012

Mobile Tablet Mobile + Tablet

AprilMayJuneJulyAugustSept

1.59% 1.69% 3.29%1.70% 1.97% 3.67%1.90% 2.38% 4.29%2.23% 2.65% 4.88%2.28% 2.93% 5.21%2.21% 3.21% 5.41%

Date CTV&GCJul 2, 2012Jul 9, 2012Jul 16, 2012Jul 23, 2012Jul 30, 2012Aug 6, 2012Aug 13, 2012Aug 20, 2012Aug 27, 2012Sep 3, 2012Sep 10, 2012Sep 17, 2012Sep 24, 2012

100.00%137.84%132.20%201.03%174.22%169.69%175.30%235.87%181.10%255.47%198.16%159.17%216.53%

Desktop Mobile Tablet CTV&GC39.51 11.51 19.3 42.4

VOD Time Per Play (Seconds) Time Per Play

Desktop

Mobile

Tablet

CTV & GC

142

103

168

584

Appendix: Data Tables


VOD Time Per Play PC, Mobile, Tablet, CTV&GC Q3 2012

Viewer Engagement by Device PC, Mobile, Tablet, CTV&GC Q3 2012

Playthrough by Device and Video Length Q3 2012

Time Per Play (Seconds/ VOD)


Jul 2, 2012Jul 9, 2012Jul 16, 2012Jul 23, 2012Jul 30, 2012Aug 6, 2012Aug 13, 2012Aug 20, 2012Aug 27, 2012Sep 3, 2012Sep 10, 2012Sep 17, 2012Sep 24, 2012

133 99 183 531145 109 206 625156 108 204 645148 106 199 577136 94 185 643137 94 191 538143 104 183 638149 103 157 622152 104 159 508148 100 145 575143 96 141 534133 104 148 563133 121 151 607

Playthrough by Device,

Length

< 1 min

1 - 3 min

3 - 6 min

6 - 10 min

> 10 min

Desktop

Mobile

Tablet

CTV & GC

63.98% 52.08% 31.66% 43.37% 26.80%

51.08% 43.86% 32.78% 31.19% 22.34%

71.62% 59.46% 46.98% 46.76% 39.24%

76.93% 73.10% 62.36% 62.32% 35.30%

Engagement by Device

25% 50% 75% 100%

DesktopMobileTabletCTV & GC

60.38% 53.36% 48.30% 41.42%50.18% 43.71% 38.67% 29.28%68.11% 59.29% 52.38% 40.67%64.36% 57.94% 53.16% 43.44%

Appendix: Methodology


METHODOLOGY

DATA SOURCES & SAMPLE SIZE

The data sample used in this report covers the third quarter of 2012, from July 1 through September 30. All data was taken from an anonymous cross-section of Ooyala’s global customer and partner database—an array of broadcasters, studios, cable operators, print publications, online media companies and consumer brands.

These firms broadcast video to over 130 different countries from more than 6,000 unique domains. Nearly 200 million unique viewers watch an Ooyala-powered video every month.

This data sample is not intended to represent the entire Internet, or all online video viewers.

DATA COLLECTION

Ooyala’s video analytics technology collects all anonymized video data in real time.

During playback, Ooyala’s video player gathers information continuously and relays it to an analytics module, which then stores the data in a distributed file system, Hadoop.

Viewer statistics are then compiled and stored in a Cassandra data cluster, where the information is made readily available for analysis.

ANALYSIS & METRICS

Ooyala’s video analytics module tracks a range of standard variables, such as:

Displays, plays and time watched

Viewer engagement and video completion rates

Sharing by social network

Geography (region, state, city, Designated Marketing Areas)

Device type (mobile, desktop, tablet, connected TV devices and game consoles)

Operating system (Windows, Android, iOS)

Browser (Safari, Chrome, Firefox, Internet Explorer)

Appendix: Glossary/Disclaimers & Assumptions


GLOssarY

CONVERSION RATE: The ratio of plays to displays. 10 displays with 1 play is a conversion rate of 10%.

COMPLETION RATE: The rate at which viewers watch a specified portion of a given video. Sometimes used interchangeably with “play-through rate.”

DISPLAY: Each (and any) time a video is loaded in a browser and displayed to the viewer

MOBILE DEVICES: All smart phones, including iOS, Android, Blackberry, and others.

VIDEO PLAY: Each time a video starts playing.

CONNECTED TV DEVICES & GAMING CONSOLES: Set-top boxes and OTT devices, including Wii, Playstation, Boxee, Roku, Xbox and Google TV.

TABLETS: All media tablets, including iOS and Android.

DIsCLaIMErs & assuMpTIONs

Data is not aggregated across all videos or providers for vertical data, and only publishers with a meaningful amount of videos watched are included. Publishers with incomplete data for Q3 have been excluded.

When selecting items for inclusion in the report, Ooyala’s data science team selected metrics that were clear and meaningful. Granular measures were broken down along many categories, which resulted in a large amount of data. Rather than reporting all of this data, the Ooyala team chose to highlight those measures that give a good impression for the data set as a whole.

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